Tokyo stocks open up 0.81% after Friday's rally on Wall Street

TOKYO (AFP) - Tokyo stocks opened 0.81 per cent higher on Monday following rallies in New York, with investors hoping for fresh stimulus from the European Central Bank's policy meeting later this week.

The Nikkei 225 index at the Tokyo Stock Exchange rose 136.62 points to 17,000.78 at the start.

Wall Street stocks jumped Friday as oil prices rebounded, snapping a five-day losing streak that had left the equity market looking oversold to some investors.

The Dow Jones Industrial Average gained 1.10 per cent to 17,511.57, while the broad-based S&P 500 rose 1.34 per cent to 2,019.42.

Investors are keeping an eye on the ECB policy meeting on Thursday after Switzerland's decision to remove its currency cap with the euro, while expectations are high for a new round of stimulus.

The dollar changed hands at 117.55 yen Monday morning, slightly up from 117.46 yen in New York Friday afternoon.

The euro fetched US$1.1568 and 136.00 yen, compared with US$1.1566 and 135.87 yen in New York.

Last week, the yen soared as other currencies plunged against the Swiss franc. A strong yen is negative for Japanese exporters and drags down the Tokyo bourse.

The Swiss National Bank announced on Thursday it was abandoning the minimum rate of 1.20 francs against the euro, a floor it had imposed three years ago to hold down the value of the franc against the currency of the 19-nation eurozone, of which it is not a member.

Join ST's Telegram channel and get the latest breaking news delivered to you.